All other things being equal, I prefer to stuff my gear in a smaller pack mainly because it's lighter. The difference between your 29 ounce pack and my 17 ounce pack is huge from my perspective. A small pack carries just as well as a larger pack with my usual load. My 3200 cubic inch 17oz pack is not "tiny" but it easily carries everything I need (including a rolled 3/4 Ridgerest) for 90% of my trips.

This is what works for me. Neither smaller nor bigger is "better" for everyone. It's just a matter of personal preference. I have a bigger pack too and it has its place in some situations.
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If you only travel on sunny days you will never reach your destination.*

* May not apply at certain latitudes in Canada and elsewhere.